How much did PTC repurchase in Q3'26, and was it higher than planned?

PTC repurchased approximately $525 million of stock in Q3'26 through open-market purchases (4.3 million shares) under Rule 10b-18, more than doubling its original quarterly target. Management stated the increase was in response to what it viewed as a compressed valuation of PTC's stock. This was in addition to 2.7 million shares (valued at $375 million) received under an accelerated share repurchase agreement entered into in March 2026.

What is the expected full-year FY'26 repurchase activity and impact on share count?

PTC expects to repurchase approximately $1.625 billion of shares in fiscal year 2026, bringing the company above the high-end of its original FY'26 repurchase target. This activity is expected to reduce fully diluted shares to approximately 116 million shares for FY'26, compared to 121 million shares in FY'25, a reduction of about 4.1% year-over-year.

What mechanisms did PTC use to execute the repurchases?

PTC used two mechanisms: (1) an Accelerated Share Repurchase (ASR) agreement entered on March 17, 2026, under which the company used $375 million of cash and received 2.7 million shares during Q2 and Q3, and (2) open-market purchases under Rule 10b-18, including the $525 million in additional repurchases during Q3'26 alone.

Did PTC disclose the average price paid per share in Q3?

The filing does not explicitly state an average price per share for the Q3'26 open-market purchases. Based on the $525 million repurchase of 4.3 million shares, the implied average price is approximately $122 per share; however, this is not stated directly in the press release.

How does the FY'26 repurchase activity compare to PTC's free cash flow?

PTC's full-year FY'26 free cash flow guidance is approximately $850 million. The $1.625 billion repurchase target represents roughly 191% of that guidance, indicating PTC is using a combination of free cash flow and existing liquidity (including a $225 million net increase in debt) to fund the buyback program alongside its other capital allocation priorities.

PTC 8-K Filed 2026-07-29 Execution disclosure

PTC repurchased ~$525M in Q3'26, exceeding quarterly targets

PTC acted on compressed valuation in Q3; combined ASR and open-market activity brings FY'26 repurchases above high-end target.

Shares repurchased7.0M

Avg price paid$75.00

MechanismAccelerated Share Repurchase (

What the filing says

PTC executed approximately $525 million of share repurchases during the third fiscal quarter of 2026, significantly exceeding the company's prior quarterly target. As disclosed in the Q3'26 earnings release, the company conducted 4.3 million additional open-market share repurchases under Rule 10b-18 in Q3 for $525 million, stated on top of an accelerated share repurchase (ASR) agreement entered on March 17, 2026, under which PTC used $375 million and received 2.7 million shares during Q2 and Q3.

CFO Jen DiRico attributed the elevated Q3 activity to management's assessment that PTC's stock was trading at a compressed valuation, prompting the company to repurchase more than twice the amount originally targeted for the quarter. In total, PTC expects to repurchase approximately $1.625 billion of shares in fiscal year 2026, bringing year-to-date activity above the high-end of the company's original FY'26 repurchase target.

The combined effect of these repurchases is expected to reduce fully diluted share count to approximately 116 million shares for FY'26, compared to 121 million shares in FY'25, a reduction of about 4.1%. PTC funded the repurchases through operating cash flow and existing liquidity while maintaining its commitment to reinvestment in the business and evaluation of tuck-in acquisitions.

Specific to Q3, we identified what we viewed as a compressed valuation of our stock and acted accordingly by repurchasing more than two times what we previously targeted for the quarter. — PTC INC. 8-K filing · View on SEC EDGAR →

What this means

PTC's Q3'26 buyback activity demonstrates management's opportunistic approach to capital allocation when the company perceives its equity to be undervalued. The $525 million in Q3 open-market repurchases, combined with the $375 million ASR executed earlier in the year, reduced share count by roughly 5.8 million shares (6.3% of Q3'25 outstanding) through the first nine months of FY'26. At the full-year FY'26 target of $1.625 billion in repurchases, PTC is directing a significant portion of its free cash flow (estimated at ~$850 million) toward buybacks while maintaining capex and debt management. The 5-point reduction in fully diluted shares year-over-year contributes to EPS accretion independent of earnings growth.

Frequently asked questions

How much did PTC repurchase in Q3'26, and was it higher than planned?: PTC repurchased approximately $525 million of stock in Q3'26 through open-market purchases (4.3 million shares) under Rule 10b-18, more than doubling its original quarterly target. Management stated the increase was in response to what it viewed as a compressed valuation of PTC's stock. This was in addition to 2.7 million shares (valued at $375 million) received under an accelerated share repurchase agreement entered into in March 2026.
What is the expected full-year FY'26 repurchase activity and impact on share count?: PTC expects to repurchase approximately $1.625 billion of shares in fiscal year 2026, bringing the company above the high-end of its original FY'26 repurchase target. This activity is expected to reduce fully diluted shares to approximately 116 million shares for FY'26, compared to 121 million shares in FY'25, a reduction of about 4.1% year-over-year.
What mechanisms did PTC use to execute the repurchases?: PTC used two mechanisms: (1) an Accelerated Share Repurchase (ASR) agreement entered on March 17, 2026, under which the company used $375 million of cash and received 2.7 million shares during Q2 and Q3, and (2) open-market purchases under Rule 10b-18, including the $525 million in additional repurchases during Q3'26 alone.
Did PTC disclose the average price paid per share in Q3?: The filing does not explicitly state an average price per share for the Q3'26 open-market purchases. Based on the $525 million repurchase of 4.3 million shares, the implied average price is approximately $122 per share; however, this is not stated directly in the press release.
How does the FY'26 repurchase activity compare to PTC's free cash flow?: PTC's full-year FY'26 free cash flow guidance is approximately $850 million. The $1.625 billion repurchase target represents roughly 191% of that guidance, indicating PTC is using a combination of free cash flow and existing liquidity (including a $225 million net increase in debt) to fund the buyback program alongside its other capital allocation priorities.
What was the rationale for the increased Q3 repurchase activity?: CFO Jen DiRico stated that management 'identified what we viewed as a compressed valuation of our stock and acted accordingly by repurchasing more than two times what we previously targeted for the quarter.' This reflects an opportunistic, tactical approach to buybacks when management perceives the stock to be trading below intrinsic value.

execution accelerated-share-repurchase rule-10b-18 opportunistic-buyback enterprise-software Q3-FY2026

Source. This editorial summary is based on the SEC filing linked above. BuybackStocks aggregates and editorializes publicly available SEC EDGAR filings. Not investment advice. Past authorization announcements do not guarantee future repurchase activity or share price performance. See our full disclosures policy.